Gov. Beebe, a democrat, endorsed the bill before it passed the republican-controlled House and Senate.

The law will use Medicaid funds to buy private insurance for those who qualify. The approval remains in the national spotlight some republicans have called the proposal as an 'acceptable alternative' to total Medicaid expansion under the Affordable Care Act.

Laura Kellams heads Arkansas Advocates for Children and Families, a non-profit group that endorsed the private option since its beginning.

“Instead of just extending Medicaid as the federal law allows us to do, this bi-partisan compromise allowed us to essentially extend private health insurance coverage to these lower income people in our state," Kellams said.

The issue split House and Senate republicans. Some claimed the bill would cost too much and extend government too far.

“People saw it as something that we simply could not afford with the continuing increases of debt that we have here. That it was literally going to cost billions of dollars that we don’t have," Jeff Williams, Washington County Republicans chairman said.

The enrollment plan begins October 1 with coverage beginning January 2014.

The federal government still has to approve the new law to confirm it follows Medicaid protocol. The Obama administration agreed to the plan in theory, but has not yet given final approval.

Copyright 2013 by KHBS and The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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